For The Record

Lawmakers demanded an explanation of the Air Force's management of a $35-billion tanker contract once awarded to Northrop Grumman and its European partner, EADS, over Boeing, and they pressed for details on how the Pentagon would proceed with rebidding the deal to avoid future mistakes. The Government Accountability Office last month detailed "significant errors" the Air Force made in the original award and said Boeing, which protested, might have won had the service not made mistakes in evaluating the bids. The Pentagon last week announced a limited rebid that will look at eight problems the GAO found in the initial process. Boeing is concerned the Pentagon may "significantly alter the selection criteria" beyond what was initially asked for by the Air Force.

UAL will record $2.6 billion to $2.7 billion in accounting charges in the second quarter. The largest chunk is a non-cash impairment charge of between $2.2 billion and $2.3 billion. "The company has concluded that the entire value of goodwill on its books has to be written off," United Airlines' parent said in an SEC filing.

Amy Jacobson, who lost her job with NBC affiliate WMAQ-TV/Channel 5 last July, sued rival CBS station WBBM-TV/Channel 2, alleging it broadcast a videotape of her in a swimsuit at the home of a man whose estranged wife had vanished "with the sole motive of boosting its sagging ratings" and portrayed the veteran broadcaster "as an adulteress and disreputable reporter." The lawsuit asks for a jury trial and more than $1 million in damages. Ms. Jacobson's attorney did not return a telephone call, nor did spokeswomen for the stations.

Gov. Blagojevich's $34-billion statewide construction program stalled again when the House rejected the gambling expansion that would have provided the major source of money to pay for it. The Senate had already approved the measure.

The Chicago Tribune will eliminate about 60 newsroom jobs by the end of August, according to employees. Tribune-owned papers are facing declines in advertising revenue and circulation that far surpass what CEO Sam Zell expected when he took over the company in December. A Tribune spokesman declined to comment.

Peoples Gas is warning customers that heating bills this winter will probably be significantly higher than last year. At $1.50 per therm in July, the price of gas Peoples passed along to customers this month is "the highest in history," the company said. Last year at this time, Peoples customers were paying 82 cents per therm.

German dialysis-to-hospitals group Fresenius unveiled a $3.7-billion deal to buy APP Pharmaceuticals, but its investors balked at the plan. Fresenius said it would finance part of the deal through a capital increase.

Huron Consulting Group bought management consulting firm Stockamp & Associates for about $219 million in a cash and stock deal to expand its hospital consulting footprint.

The new owner of investment bank Bear Stearns withdrew from a contract to help the Illinois Gaming Board auction the state's 10th casino license. A spokeswoman for J. P. Morgan Chase declined to discuss why the financial giant did not proceed with the contract. A Department of Revenue spokesman said J. P. Morgan did not offer a reason for its decision when it notified the state last month. The contract is expected to run through December 2009.

Cargill broke ground on a $22-million manufacturing plant on the Far South Side that will make soybean-based "polyols." The 40,000-square-foot plant will join two other operations on an 80-acre site Cargill owns at 12201 S. Torrence Ave.

R. R. Donnelley & Sons won a multiyear contract worth more than $80 million to produce a major portion of F&W Publications' book and magazine work.

Westell Technologies' Thomas E. Mader resigned as president, CEO and director. Former director Bernard F. Sergesketter will serve as interim CEO until the company finds a successor. . . . The Arts and Business Council in Chicago named Peter Kuntz, 51, executive director. He replaces Joan Gunzberg, who is retiring. . . .The School of the Art Institute appointed artist and architect Wellington "Duke" Reiter president. He replaces Tony Jones, who becomes chancellor. . . . Timothy Schwertfeger resigned as chairman of Nuveen Investments. He was replaced by Robert Bremner. . . . Stephen Brodsky, 37, is leaving his post as president of the Chicago Stock Exchange to join private-equity firm Vernon & Park Capital.